The 10-week UCT Restaurant Management online short course is designed to equip you with the most up-to-date knowledge around what it takes to confidently capitalise on the growing opportunities in SA’s booming hospitality sector. If you register to join the class, you’ll walk away empowered with the functional competencies you need to open and manage a successful restaurant today.
Here’s your sneak preview of a video lecture you’ll encounter during Module 9 of the course, featuring your Course Instructor, Adrian Bompani, and Michael Terespolsky, Managing Director of Col’Cacchio Holdings:
Ready to step up to the plate?
Hi and welcome to module 9. In this next video, we will be discussing franchising in the South African context. We will be chatting to Michael Terespolsky, owner and director of Col’Cacchio pizzeria.
A franchise is an established brand. It’s been tried and tested, it’s been around the block. The good stuff has been taken out, and the stuff that doesn’t work has been removed. A franchise owner or a manager coming in gets to have all those advantages, they don’t have to go and reinvent the wheel. If they stick to the rules they won’t mess anything up. All franchises run a national marketing fund, and they handle all the marketing involved in the group. Only local store marketing gets handled by managers and owners. So they really just have to concentrate on running their store, and making a good job of that.
In our particular brand, our operations staff visit the stores every week to check up on them and make sure things are going okay, see that they are staying on track. The thing that makes any business successful particularly with franchises is consistency. Every store has to be the same and there’s a reason why we have operations and procedures and rules and regulations, and when people buy into that they buying into a way of doing things, that every store within the group is doing it, and they are doing it the same way.
The head office is running the marketing, they developing the new menu. They do all that back-end stuff that a normal business owner would have to do themselves and this is obviously very attractive for people coming in because they see it works and they don’t have to worry about it. That’s probably the biggest advantage in getting involved in a franchise. There are stats out there that show that franchise group and particularly restaurants are way more successful at surviving than an individual start-up.
When they buy in, they get their store built for them while they are training. They go through a full two-month training in one of our training stores, with all their staff, and we are on site with them for at least another month in-store hand-holding before we let go. They’re not a hundred percent by any means after three-months, but they’ve got a good footing.
We then visit them every single week – all my stores get a visit every single week – by an operations staff member, and that’s just to make sure that things are going okay if there’s an area of concern that we can look into it, see what’s going on, help them steer them in the right direction, make sure that they are doing things the right way and as per our agreed standards, the Col’Cacchio way.
The individual franchise is responsible for local store marketing, but we assist with that extensively; from strategic concept to design of an ad that they need, help if they want to do something we’ll have a look at it and see if we’ve done it before; did it work, did it not work; recommend. So from the marketing side, there’s a lot of help as well. Any part of their business that requires assistance; be it the financial side of the business, be it the operation side of the business, be it the service side of the business.
We are there, we get involved from head office level, we deal with suppliers we make sure we get the best prices. Obviously there is economies of scale; so because the volumes that we buy we are able to secure far better prices than if you were an individual that was opening up a store. And we also have an extensive training program. Whether it is front aspect of house, back of house, waiters, management, financial, hygiene, as well as self-help training for staff, where the training is designed to benefit the staff member in their personal capacity, not necessarily in a work capacity. So, we offer quite a wide array of training as well to the franchisee and to their staff.
There are a number of set operating procedures involved in running a Col’Cacchio pizzeria franchise. The most obvious ones would be your day to day running of your restaurant, so from coming, in making sure that your cash-up has balanced from the night before, making sure that your stock has balanced. We don’t roll over into the following day until the previous day’s accounting has balanced, that there is various stock items that we count every day and they need to make sense. If we started off with 10 portions of chicken and we sold 5, we must have five portions left at the end of the day. If we don’t, we need to get in there and find out where it is, find out what happened. Then the initial preparation for that day’s trade starts, stock gets issued, any preparation of individual items that have to be done before we start serving needs to be done, where the items have to be cooked, where the dressings have to be made, sources have to be made.
In our particular business, we make everything on site from scratch, we don’t buy it in, in bulk. I’m talking about sauces and dishes, so everything is made bespoke within the store, fresh dough is made, pasta sauces are made, salad dressings are made. So all of that preparation has to be done before we open. At the end to the day when we finally close the kitchen and the last customer leaves, there is obviously a full cleanup that needs to be done. Certain preparation needs to be done for the following day, preparation that might take a little bit longer. We need to balance all our stock, pay any staff that might need to be paid on the day, make sure our staff get home safely. At night, we have transport for all of our staff to get home. That’s just a typical day, simplified.
You’ve probably heard that most franchises have Franchisee of the Year awards so, if you want your store to stand out head and shoulders above the other stores and win the Franchisee of the Year award, then you obviously have to do all the things that’s expected of you, but you have got to be doing them better than everybody else. So, what typically makes the biggest difference is service; if everybody’s following the recipes, and everybody’s doing their stock, and they are making their dishes correctly, and they are balancing and that; the difference comes in, in the service, because it is harder to measure. So we have mystery diners that come to the stores every month, our operational staff come in every week, they do store audits and store reports, and they monitor and they measure. And if your store can consistently come up tops in your store reports, your mystery diner reports, your audits, your hygiene reports, your gross profits; if you manage to keep them down by running an efficient business these are the things are going make you stand out, and make your store the top store in the group. So if you can exceed your customers expectations when they come in, your store will stand up head and shoulders above the rest.
The Consumer Protection Act has a major impact on the buying and selling of franchises. The Act actually has a separate section specifically designated to franchising, and every franchise agreement needs to be compliant. Gone are the days when you could just do whatever you want. In the past, a lot a franchise stores who weren’t scrupulous would just use it as another form of income, but the law has changed now, it has to be used for marketing. What comes in must go out, and you have to show your franchisees a marketing management accounts report every three months, so they can see where the money that they are paying for marketing goes.
So that’s just one example of how it’s been regulated.
Thank you Michael. In work unit 3 of this this module we will be discussing set operating procedures.